Ted Snyder provides reverse mortgage services for seniors in California including Los Angeles County, Orange County, Riverside County, San Bernardino County, San Diego County and Ventura County. You can reach me anytime at 1-800-827-1794. Ted Snyder is a reverse mortgage loan originator offering reverse mortgages to seniors 62 and over throughout California. If you are 62 years or older and own your own home you may qualify for a reverse mortgage. I look forward to working with you on your reverse mortgage. Please call me today at 1-800-827-1794 to chat with me about your needs.
A reverse mortgage can be used to pay off your current mortgage, payoff other debts, remodel your home, or just about anything else you can imagine. The best part is that with a reverse mortgage you never have to make another monthly payment as long as you live in your home and the proceeds to you are tax free, however as a homeowner, you remain responsible for paying real estate taxes, homeowners’ insurance and keeping the property maintained. As a licensed mortgage loan originator I can work with you to discuss your needs and come up with the reverse mortgage that is right for you. I can help you find a great program with low costs and attractive rates.
And if you work with me, unlike working with the big banks I will be there for you to answer all your questions and provide you with personal service. Please call me today at 1-800-827-1794 so I can help you decide if a reverse mortgage is right for you.
What Is A Reverse Mortgage?
A reverse mortgage is a loan that allows homeowners aged 62 or older to obtain cash from the equity in their homes. The payments can be used at the homeowners’ discretion for any expenses desired, from added income to cover day-to-day living expenses to extra cash to cover the cost of medical expenses, a new car, home remodeling project, education for a family member or vacation. There is no limit as to what the money can be used for unless a person opts for a single-purpose reverse mortgage. This option restricts the usage of the money obtained in the loan for a specific purpose but may have lower fees and interest associated with the loan.
As the name implies, the payment stream of a reverse mortgage works in a reverse fashion as it does in a traditional mortgage. In a traditional mortgage, a homeowner (borrower) makes monthly payments to a lender while living in a home to repay the amount of an upfront lump-sum payment provided by the lender so the borrower can purchase the home. In contrast, a reverse mortgage results in the lender making payments to the homeowner on a one-time, monthly or on-demand basis based on the equity in the person’s home, as well as other factors, with the loan payment not being due until the home is sold or otherwise vacated.
During the time that a homeowner has a reverse mortgage, the homeowner retains full ownership and property rights of the home and remains responsible for paying real estate taxes, homeowners’ insurance and keeping the property maintained. However, once the home is sold, the reverse mortgage is due in full. If the home is vacated for another reason, such as the death of the homeowner, the estate has the option of selling the home to pay off the reverse mortgage or coming up with another means of payment on the loan if they wish to keep the home. Despite myths about reverse mortgages, the lender does not own the home in a reverse mortgage arrangement and cannot force the sale of a home, except under very specific circumstances, such as the homeowner becoming delinquent in payment of taxes or insurance or not maintaining the home.
There are different types of reverse mortgages available to older Americans. Some reverse mortgages are backed by the federal government, while others are offered by private lenders. Reverse mortgages insured by the Federal Housing Administration (FHA) are referred to as Home Equity Conversion Mortgages or HECMs and these are the most popular types of reverse mortgages. Various types of lenders also offer proprietary reverse mortgages, which are not insured by the government.
There are a number of options to consider when choosing a reverse mortgage. These include things like the types and amounts of fees, the interest rate and the type of payment option desired. Homeowners can choose to receive a lump sum payment, monthly payments based on a fixed term or the expected amount of time a person is expected to be living in the house (tenure), or money can be obtained as desired by the homeowner, similar to a line of credit. Reverse mortgages provide homeowners aged 62 or older with the option to obtain needed or desired cash by tapping into the equity in their homes while retaining full home ownership and property rights. As long as the homeowner lives in the home and remains current with taxes, insurance and maintenance of the home, no repayment of the loan is necessary.
How To Choose A Reverse Mortgage Lender
Since the vast majority of reverse mortgages written today are Home Equity Conversion Mortgages (HECMs), which are regulated by the U.S. government, many borrowers are mistaken in thinking that all HECM loans are the same and therefore, they do not need to do their homework in order to find the best reverse mortgage lender to meet their needs. However, as with any major decision, especially one affecting your financial health, it is a good idea to do your homework to find a reverse mortgage lender that will provide just what you need while leaving out what you don’t.
Although the primary aspects of an HECM loan are the same no matter what lender you use, you will still find that different reverse mortgage lenders will come with varying associated costs and will also offer differing levels of customer service. Both of these aspects should be important to you as a consumer. Additionally, if you are obtaining a proprietary reverse mortgage (also called a jumbo reverse mortgage), there may be fewer similarities about loans and lenders since these loans are not regulated by the government. There will also be fewer options to choose from with these types of loans, however.
So what should you look for when trying to choose a reverse mortgage lender?
For one, you will likely want to limit your fees as much as possible to make any costs associated with your reverse mortgage as low as they can be. Costs can include anything from appraisal fees to inspection fees, as well as other origination costs. These fees can be the biggest variable when it comes to how much a reverse mortgage will cost from one lender to another and can vary widely.
You’ll also want to ensure that you’re getting the best interest rate possible on your loan, as well as the type of interest rate you desire. For example, if you are requesting a lump-sum payment option and have opted for a fixed interest rate loan, you’ll want to find a lender that will offer you the lowest available rate. If you’re instead going to have an adjustable rate reverse mortgage, you’ll want to make sure that the lender you select has low margins. HECMs all have the same mortgage insurance premium on loans but interest rates can vary, which can change the overall cost of the loan.
Since you’ll be dealing with your lender for a potentially long time, you’ll also want to find a reverse mortgage lender that can provide the level of customer service you expect and deserve. You’ll also want to try to gauge how honest and trustworthy your lender is. You can do this by asking yourself if the lender informs you of both benefits and risks, rather than trying to blindly push you into a product that he or she may be incentivized to sell but that may not be in your best interests. You also should make sure that you are not required by the lender to purchase any additional financial products along with your loan.
Many people find that smaller lenders provide enhanced levels of customer service, while larger lenders offer more attractive fees and rates. This is not an absolute truth, however, and you may find results to be different. That’s why it’s worth taking the time to do your homework about different reverse mortgage lenders to find the best fit for you.
This material is not from HUD or FHA and has not been approved by HUD or a government agency.
As with any loan there are risks associated with a reverse mortgage. The right to remain in your home is contingent on complying with reverse mortgage loan terms and it is possible to lose your home if you do not comply with the terms of the reverse mortgage such as keeping current with property taxes, insurance and maintenance costs.